If Investors Are Risk Averse and Hold Only One Stock,we

question 145

True/False

If investors are risk averse and hold only one stock,we can conclude that the required rate of return on a stock whose standard deviation is 0.21 will be greater than the required return on a stock whose standard deviation is 0.10.However,if stocks are held in portfolios,it is possible that the required return could be higher on the stock with the lower standard deviation.

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Definitions:

GTP

Guanosine triphosphate, a nucleotide used by cells as a source of energy and as a substrate in protein synthesis processes.

A Site

The location on the ribosome where an aminoacyl-tRNA binds during protein synthesis.

Retrotransposons

Genetic elements that can amplify themselves in a genome and are capable of moving from one location to another within the host's genome.

Mutations

Changes in the nucleotide sequence of the genetic material of an organism, which can lead to variations in traits.